BP Denies Rumors of Merger with Shell

Some investors viewed some recent moves by Shell as indications of a merger with BP.  Most recently, Shell spurred speculation by announcing a move to simplify its North American business.  However, BP’s chief executive, Tony Hayward, recently denied the industry rumors that BP and Shell were discussing a merger.  Similarly, a Shell spokesperson declined to confirm any discussions had occurred.  While such a deal was apparently considered in 2005 by Hayward’s predecessor, both companies denied the rumors that negotiations were again underway.  Such a merger would amount to a takeover by BP and combine Europe’s two largest oil companies.